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Budget proposal includes plan to opt out of health coverage

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MADISON (AP) — Gov. Scott Walker is proposing that state employees be offered $2,000 a year to opt out of state health insurance coverage.

A state-commissioned study by Deloitte Consulting says the incentive could generate $18 million in savings if enough employees take the offer. But, the study also says if only a small number of employees opt out, it could cost the state an additional $4 million a year.

The state health insurance plan covers roughly 62,000 employees and their families. The Deloitte study says about 5 percent of employees opt out, primarily because they’re covered by a spouse’s plan. Another 10 percent opt out because their spouses are also employed by the state.

The State Journal reports at least nine other states offer a similar incentive.